Question

X, Y and Z were partners in a firm. On 1st April, 2018, their fixed capitals were
*50,000, *25,000 and * 25,000 respectively.
As per the Partnership Deed:
(i) Z was entitled for salary of 5,000 p.a.
(ii) All the partners were entitled to interest on capital at 5% p.a.
(iii) Profits were to be shared in the ratio of capitals.
Net profit for the year ended 31st March, 2018 of * 33,000 and 31st March, 2019 of
45,000, was divided equally without complying the above terms.
Y noted the above errors and brought them to the notice of other partners.
Pass an adjustment Journal entry to rectify the above errors.​

Answer 1

38. AB and CD are respectively the smallest and

longest sides of a quadrilateral ABCD. Show

that <A> <Cand <B> <D:-

Answer 2

Journal entry

Explanation:-

ADJUSTMENT TABLE

X Y Z TOTAL

profits wrongly credited (dr). 11000 11000 11000 33000

salary not provided (cr.) - - 5000 5000

IOC not credited to partners

a/c @5% (cr) 2500 1250 2500 6250

profits actually to be distributed 8700 4350 8700 21750

(cr)

TOTAL OF CREDITS 11200 5600 16200 33000

NET EFFECT 200(cr) 5400(dr) 5200 (cr) -

ADJUSTING ENTRY

JOURNAL

PARTICULARS DR. CR.

Y's capital a/c dr. 5400

Y's capital a/c dr. 5400To X capital a/c 200

Y's capital a/c dr. 5400To X capital a/c 200TAZ's capital a/c 5200